There is a likelihood that Bitcoin will continue rising as bulls target the important resistance level at 33,000.
Bullish View
- Buy the BTC/USD pair and set a take-profit at 33,000.
- Add a stop-loss at 29,000.
- Timeline: 1-2 days.
Bearish View
- Set a sell-stop at 30,700 and a take-profit at 28,000.
- Add a stop-loss at 32,000.
The BTC/USD pair rose to an important resistance level as cryptocurrencies and stock prices turned green. The pair rose to a high of 32,000, which was the highest it has been since May 16th this year. This price was about 20% above the lowest level this month.
Bitcoin Recovers
Bitcoin price has been in a tight range in the past few weeks as investors assess the overall market conditions of digital coins.
It appears that Bitcoin is now attempting to regain its correlation with American stocks considering that the main indices have been in a strong comeback. The Nasdaq 100 index has risen by more than 10% from its lowest point in May. Futures point that the index will open in the green.
Analysts believe that the rally is happening since all the bad news have already been priced in. For example, all investors now believe that the Fed will continue hiking interest rates in the coming months.
In a statement on Monday, Fed’s Christopher Waller went a step further and said that the bank should hike rates above the neutral point in a bid to slow the economy. The neutral point is often judged to be about 2.4%.
The BTC/USD pair’s recovery is also tied to the potential recovery of the Chinese economy now that officials have signaled that they will end lockdowns.
Still, some analysts believe that these gains could be temporary. They note that the rebound could be part of buying the dip considering that the coin has crashed in the past eight straight weeks. In the past, coins and other assets tend to have some pullbacks during bear markets.
“Bitcoin just went through eight consecutive weeks in red territory and got technically oversold to levels we traditionally only see at the bottom of bear markets.”
BTC/USD Forecast
The four-hour chart shows that the BTC/USD pair has been in a slow recovery lately. It has retested and moved above the important resistance level at 30,800, where it has struggled moving above before. The pair has managed to move above the 25-day and 50-day moving averages. At the same time, the Relative Strength Index has moved above the overbought level. It has also formed a small bullish flag pattern.
Therefore, there is a likelihood that Bitcoin will continue rising as bulls target the important resistance level at 33,000.
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